MGT 3200 CH. 5 - Strategic Planning

What are three requirements for effectively managing group decisions? - Enhancement of creativity - Facilitating satisficing - The constructive use of disagreement and conflict - An appropriate leadership style - Encouraging groupthink

- Enhancement of creativity - The constructive use of disagreement and conflict - An appropriate leadership style

Which of the following is a combination strategy in the adaptation model of strategy? 1. Defender 2. Reactor 3. Prospector 4. Analyzer

Analyzer

What do non-planners (with their locus of control) typically blame for their poor performance? 1. Lack of skill 2. Lack of effort 3. Bad luck 4. Lack of motivation 5. All of the above.

Bad luck

In the Business Portfolio Matrix approach, the corporate strategy is to own the mix of businesses that maximizes: 1. market share. 2. profitability. 3. both market share and profitability. 4. none of the above

Both market share and profitability

Which action takes place during Step 3 of the planning process? - Goals and plans are selected. - Alternative plans and goals are generated. - The situation is analyzed. - Goals and plans are evaluated.

Goals and plans are evaluated

WILL BE ON EXAM!! Which of the following is NOT consistent with the SMART model of goal setting? 1. Goals that are specific in terms of what's desired and when it's desired. 2. Goals that are set in important areas only. 3. Goals that are easily achieved. 4. Periodic feedback on one's performance in relation to the goal. 5. Goals that are measurable.

Goals that are easily achieved.

How do social realities affect decision making? - Managers with a high level of authority can ignore social realities to make sound decisions. - A manager must consider the preferences and reactions of many people. - Important managerial decisions are marked by conflict among interested parties. - Many decisions are the result of intensive social interactions, bargaining, and politicking.

- A manager must consider the preferences and reactions of many people. - Important managerial decisions are marked by conflict among interested parties. - Many decisions are the result of intensive social interactions, bargaining, and politicking.

What actions should be taken during the sixth and final stage of the decision-making process? - Collect information on how well the decision is working. - Compare collected information with specified goals. - Use feedback to either continue the decision or go back to the first stage. - Repeat the feedback-gathering process as necessary until a positive conclusion is reached.

- Collect information on how well the decision is working. - Compare collected information with specified goals. - Use feedback to either continue the decision or go back to the first stage.

What are two generic business strategies? - Differentiation - Low-growth - Low-cost - Implementation

- Differentiation - Low-cost

What factors should managers compare current performance to in order to find sources of discrepancies in performance? - Future expected performance - Current performance of other organizations - Past performance - A programmed decision matrix

- Future expected performance - Current performance of other organizations - Past performance

What are potential advantages of using a group to make a decision? - Group discussion provides intellectual stimulation. - More information is available. - Group discussion usually leads to a lower level of commitment. - A greater number of perspectives on the issues or different approaches to solving the problem are available. - Participants in the group discussions are more likely to understand why the decision was made.

- Group discussion provides intellectual stimulation. - More information is available. - A greater number of perspectives on the issues or different approaches to solving the problem are available. - Participants in the group discussions are more likely to understand why the decision was made.

What are common potential problems associated with group decision making? - Intellectual stagnation - Groupthink - Goal displacement - Satisficing

- Groupthink - Goal displacement - Satisficing

What are some psychological biases that act as barriers to effective decision making? - Illusion of control - Discounting the future - Framing effects - Competitive advantage

- Illusion of control - Discounting the future - Framing effects

Which are components of the internal resource analysis? - Marketing audit - Financial analysis - HR assessment - Competitor analysis

- Marketing audit - Financial analysis - HR assessment (Also, Operations analysis and Other internal resource analyses)

In the fourth step in decision making, the decision will differ according to the criteria and method used. What are the important ways of thinking managers can use when choosing among the alternatives they have evaluated? - Forecasting - Optimizing - Maximizing - Satisficing

- Optimizing - Maximizing - Satisficing

Which factors may be barriers to effective decision making? - Technological simulations - Time pressures - Social realities - Psychological biases

- Time pressures - Social realities - Psychological biases

When a manager engages in the crystal ball syndrome, she is neglecting what aspect of planning? 1. Establishing Objectives 2. Developing Premises 3. Decision-Making 4. Implementing a Course of Action 5. Evaluating Results 6. 1, 2, and 3

1, 2, and 3

A defender strategy is like what strategy in the BCG matrix? 1. Star 2. Cash Cow 3. New Venture 4. Dog 5. Both Cash Cow and Dog

Cash Cow

In the BCG Matrix, if a company has a high share of a low growth market, it is classified as a _________. 1. Cash cow 2. New venture 3. Star 4. Dog

Cash cow

The state that exists when decision makers have accurate and comprehensive information is known as __________.

Certainty

What name is given to the state that exists when decision makers have accurate and comprehensive information? - Certainty - Probability - Risk - Uncertainty

Certainty

The basic dilemma in planning is between _______________. 1. creativity and practicality. 2. effectiveness and efficiency. 3. top managers and 1st-line managers. 4. commitment and flexibility.

Commitment and flexibility

What kind of strategy is a company using when it focuses all energies in a single industry? - Vertical integration - Related diversification - Unrelated diversification - Concentration

Concentration

In developing a plan a manager relies primarily on _________ skills whereas with implementing a plan a manager relies primarily on __________ skills. 1. technical; conceptual 2. conceptual; technical 3. human; technical 4. conceptual; human

Conceptual; human

Phase V: Evaluating Results is most similar to what function of management? 1. Planning 2. Organizing 3. Staffing 4. Leading 5. Controlling

Controlling

A strategy of related diversification involves moving into new businesses that are related to the company's ________ business. - Core - Unprofitable - Domestic - Profitable

Core

What type of strategy identifies the set of businesses in which the organization competes and the distribution of resources among those businesses? - Cooperative - Functional-level - Corporate - Business-level

Corporate

A ______ identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses. - strategical coherence - contingency plan - corporate strategy - functional analysis

Corporate Strategy

In Step 2, the process of generating several alternative goals, managers and other decision makers are encouraged to be ______. - Creative - Cautious - Conservative - Circumspect

Creative

Which actions are NOT requirements for effectively managing group decisions? - Enhancement of creativity - Appropriate leadership style - Constructive use of disagreement and conflict - Encouraging goal displacement - Facilitating satisficing

NOT requirements: - Encouraging goal displacement - Facilitating satisficing ARE requirements: - Enhancement of creativity - Appropriate leadership style - Constructive use of disagreement and conflict

When using groups to make decisions, what is one of the potential disadvantages? - Goal displacement - Multiple perspectives and approaches - Intellectual stimulation - Larger pool of information

Goal displacement

Which statement is true about using a group to make a decision? - To reach effective decisions, groups must reach unanimous consensus. - Individuals always make better decisions than groups. - Groups generally make higher-quality decisions than individuals. - Decisions should always be made by groups.

Groups generally make higher-quality decisions than individuals.

In the BCG Matrix, where are most of the corporation's resources invested? 1. Cash Cows and Dogs 2. Cash Cows and Stars 3. Stars and New Ventures 4. Cash Cows and New Ventures 5. New Ventures and Dogs

Stars and New Ventures

What process involves managers from all parts of the organization in the formulation and implementation of strategic goals? - Strategic assessment - Processing - Strategic management - Planning

Strategic management

What is the fifth step of the strategic management process? - Problem identification - Development of control systems - Strategy implementation - Creation of mission and vision statements

Strategy implementation

SWOT is an acronym that stands for ______, weaknesses, opportunities, and threats. - Strengths - Strategy - Serendipity - Skills

Strengths

Why is Step 6 of the planning process so important? - Without it, employees would not understand the plan. - It is needed to develop an attainable budget. - It is the stage during which contingency plans are determined. - It is needed to determine if the selected plan is working.

It is needed to determine if the selected plan is working

A vertical integration strategy involves expanding the domain of the organization into _____ or to _____. - supply channels; competitors - supply channels; distributors - international; underdeveloped markets - competitors; distributors

Supply channels; Distributors

Which statement about the design thinking process is true? - It is highly structured and guided by the chief technology officer. - It is a sequence of orderly steps. - It seeks customer feedback on projects already under development. - It starts by developing an understanding of current and potential customers.

It starts by developing an understanding of current and potential customers.

Which of the following management functions is most important to effective implementation of a plan? 1. Planning 2. Organizing 3. Leading 4. Controlling

Leading

A strategic plan involves making decisions about the organization's ________ goals. - Operational - Budgetary - Divestment - Long-term

Long-term

Which 2 letters in the SMART model of goal-setting are most directly connected to one another? 1. A and R 2. S and M 3. M and T 4. A and M

M and T

What is the fourth step in decision making, which occurs after all the possible consequences of the options have been evaluated? - Diagnosing the problem - Analyzing possible options - Evaluating the alternatives - Making the choice

Making the choice

The ______________ describes the organization as it currently operates, whereas the strategic vision points to the future.

Mission

What drives the analysis of the external environment (opportunities and threats)? - Strategy implementation - Mission and vision - Internal strengths and weaknesses - Strategic control

Mission and vision

The type of plan that translates broad strategic goals into specific goals that are relevant to a particular organizational function is known as a(n) ______ plan. - Operational - Strategic - Tactical - Specialized

Tactical

Which type of plan focuses on the specific actions a particular unit must take to fulfill its part of the strategic plan? - Tactical - Operational - Strategic - Business-level

Tactical

What type of strategy involves expanding the domain of the organization to include supply channels and distributors? - Vertical integration - Horizontal integration - Functional - Mismatched

Vertical integration

The strategic ______ points to the future by providing a perspective on where the organization is headed and what it can become. - Structure - Management - Mission - Vision

Vision

A successfully completed internal analysis of the firm will allow a company to identify its strengths and ___________. - Threats - Opportunities - Weaknesses - Assessments

Weaknesses

Place the levels of management in order from highest to lowest. - Operational - Strategic - Tactical - Team Leaders

1. Strategic 2. Tactical 3. Operational 4. Team Leaders

When key line managers are left out of the planning process, which level of management is most likely to be excluded? 1. Top management 2. Middle management 3. 1st line management 4. All of the above

1st line management

To be effective, an organization's strategic, tactical, and operational plans must be ______. - Implemented by the strategic team - Aligned - Government approved - Individual and separate

Aligned

Strategic management involves managers from ______ of the organization in the formulation and implementation of strategic goals and strategies. - All levels - The board of directors - The bottom level only - Just the top levels

All levels

In the Business Portfolio Matrix approach, which of the following would be included in the organization's business portfolio or corporate strategy? 1. Star 2. Cash Cow 3. New Venture 4. Dog that is profitable 5. All of the above 6. Only star, cash cow, and new venture.

All of the Above

If it's determined that a plan is not achieving desired results, where could the problem be in the planning process? Phase I: Establishing Objectives Phase II: Developing Premises Phase III: Decision-Making Phase IV: Implementing a Course of Action Phase V: Evaluating Results All of the Above

All of the above

Which of the following is true concerning well-crafted mission statements? 1. They define an organization's purpose. 2. They prove a target for organizational strategies. 3. They are a source of legitimacy. 4. They promote greater organizational commitment from employees. 5. All of the above are true.

All of the above are true

Which of the following is a reason a manager may resist planning? 1.Planning is not rewarded by the organization. 2.Planning can be used to measure the manager's performance. 3.The manager may have a fear of failure related to planning. 4.Planning doesn't give the manager immediate feedback. 5.All of the above.

All of the above.

Which of the following phases of the planning process are involved in developing a plan of action? - Phase I: Establishing Objectives - Phase II: Developing Premises - Phase III: Decision-Making - All of the above - Only Phases I and II. - Only Phases II and III.

All of the above.

The second step of the planning process should generate ______ goals and plans for the future. - Challenging - Stretch - Alternative - Ambiguous

Alternative

What is the second step in the strategic management process? - Analysis of the external environment - Strategy execution - Liability and research assessment - Strategic analytical control

Analysis of the external environment

When a manager fails to work her plan, this manager is neglecting what aspect of the planning process? 1.Establishing Objectives 2.Developing Premises 3.Implementing a Course of Action 4.Evaluating Results 5.Both 3 and 4

Both 3 and 4

When a manager engages in the "crystal ball" syndrome, she is neglecting what aspect of planning? 1. Establishing objectives. 2. Developing premises. 3. Decision-making. 4. Implementing a course of action. 5. Evaluating Results 6. Both 4 and 5.

Both 4 and 5

What type of strategy defines the major actions by which a company builds or strengthens its competitive position in the marketplace? - Business - Vertical - Corporate - Ad hoc

Business

What is the name of the human-centered approach to innovation that integrates customer needs, the potential of technology, and the requirements for business success? - Innovation opportunity - Technology trading - Bureaucracy - Design thinking

Design thinking

In the decision-making process, which one of the following actions comes directly AFTER the act of generating alternative solutions? - Realizing that a discrepancy exists between current and past performance - Determining the respective suitability of each alternative - Choosing the solution to implement - Removing all doubt from the decision making

Determining the respective suitability of each alternative

Which phase of the planning process is synonymous with forecasting? 1. Establishing Objectives 2. Developing Premises 3. Decision-Making 4. Implementing a Course of Action 5. Evaluating Results

Developing Premises

What is involved in the second stage of decision making? - Predicting consequences - Choosing the best alternative - Developing alternative solutions - Evaluating alternatives

Developing alternative solutions

PXG makes golf clubs that offer outstanding performance and feel to golfers. These clubs are also custom fit to a golfer's swing based on an extensive swing analysis. These golf clubs are very expensive (3 times the price of other top-line golf clubs) and are sold only through PXG fitting specialists. This reflects the use of what generic strategy? 1. Overall cost leadership 2. Differentiation 3. Defender 4. Analyzer

Differentiation

A company's competitive advantage is synonymous with what component of a well-thought out strategy? 1. Scope 2. Resource Deployment 3. Distinctive Competence 4. Synergy

Distinctive Competence

In the BCG Matrix, what business-level strategy would one select for a new venture that has a negative growth forecast? 1. Retrenchment 2. Growth 3. Stable growth 4. Divestment 5. Either retrenchment or divestment

Either retrenchment or divestment

When a manager engages in the "shoot the messenger" syndrome, this most directly affects what aspect of planning? 1. Establishing objectives. 2. Developing premises. 3. Decision-making. 4. Implementing a course of action. 5. Evaluating Results

Evaluating Results

What name is given to the stage of decision making where information is collected and compared to goals and plans to determine success or failure? - Evaluating alternatives - Evaluating the decision - Identifying and diagnosing the problem - Making the choice - Generating alternative solutions

Evaluating the decision

Which management levels are involved in planning? - Only tactical managers - Team leaders and middle managers - Every level - Only top managers

Every levels

The formal decision-making process has six steps. Which step involves implementing the decision? - Second - Sixth - Fifth - Fourth

Fifth

Which factor is NOT a barrier to effective decision making? - Social realities of organizations - Full execution of the six stages of decision making - Psychological biases of people - Time pressures on managers and companies

Full execution of the six stages of decision making

The goal and plan selection step of the formal planning process comes after which action? - Alternative stance planning - Situation analysis - Goal and plan evaluation - Implementation

Goal and plan evaluation

Implementation of the plan comes after which step in the planning process? - Situational analysis - Goal and plan selection - Goal and plan evaluation - Alternative goals and plans

Goal and plan selection

What is the fourth step of the formal planning process? - Assessing the situation - Cost-benefit analysis - Goal and plan selection - Monitoring and controlling

Goal and plan selection

What is the first step in the ideal decision-making process? - Evaluating the decision - Generating alternative solutions - Making the choice - Implementing the decision - Identifying and diagnosing the problem - Evaluating alternatives

Identifying and diagnosing the problem

Which of the following is NOT true concerning the managerial value system and strategic plan formulation? 1. The value system of the organization affects the implementation of a strategic plan. 2. Since values change slowly, strategic change is often achieved incrementally. 3. An organization's value system can be an impediment to necessary strategic change. 4. If an organization needs a radical strategic change, the organization often gets rid of 1st line-management to expedite the change.

If an organization needs a radical strategic change, the organization often gets rid of 1st line-management to expedite the change.

As noted in Step 5 of the planning process, proper ______ is the key to achieving goals. - Selection - Alterations - Implementation - Forecasting

Implementation

After a strategy is formulated, strategic managers must help make sure it is ______. - difficult to understand - not copied by competitors - implemented efficiently - easily identifiable by customers

Implemented efficiently

Once a choice is made in the decision-making process, managers must put their choice into action. What term is used to describe this process? - Planning - Implementing - Organizing - Influencing

Implementing

Strengths and weaknesses refer to ______ resources. - Internal - Strategic - External - Vulnerable

Internal

Which analysis is made up of components such as a financial analyses and marketing audits? - Strategic - Environmental - Internal resource - Benchmark

Internal resource

WILL BE ON EXAM!! Gresham's law of planning...? 1. is the tendency for planning problems to overshadow day-to-day problems. 2. happens only when managers don't realize the value of planning. 3. is a problem of misplaced priorities. 4. All of the above.

Is a problem of misplaced priorities

Which of the following is NOT true concerning a prospector strategy? 1. It works best in a dynamic environment. 2. It uses a growth strategy. 3. It operates using flexible production. 4. It has fewer rules and regulations. 5. It has tight cost controls.

It has tight cost controls

Which tactics are generally NOT employed by fast-acting firms to meet time pressures without sacrificing quality? - Focus on futuristic forecasts - Rely on heavily trusted experts - Rely on long-range planning - Take a long-term view of conflict

NOT used: - Focus on futuristic forecasts - Rely on long-range planning - Take a long-term view of conflict Tactics that ARE USED: - Rely on heavily trusted experts - Focus on real-time information - Involve people more effectively and efficiently - Take a realistic view of conflict

Which of the following is true concerning corporate and business-level strategies? 1. The two strategies have different goals. 1. Corporate strategy focuses on how to differentiate an organization from its competition. 2. Business-level strategy focuses on what businesses the organization wants to owns. 3. A corporation made up of multiple businesses will have multiple corporate strategies. 4. None of the above are true.

None of the above are true.

With respect to the strategic planning process, at what phase of the planning process is first-line management's participation most valuable? 1.Phase 1: Establishing Objectives 2.Phase 2: Developing Premises 3.Phase 3: Decision-Making 4.Phase 4: Implementing a Course of Action 5.All of the above.

Phase 4: Implementing a Course of Action

The monitor and control step of the planning process comes after which step? - Situational analysis - Goal and plan selection - Plan implementation - Alternative goals and plans

Plan implementation

The process of making decisions about goals and activities that an organization will pursue in the future is referred to as ______________.

Planning

What term describes the conscious, systematic process of making decisions about goals and activities that an individual, group, or organization will pursue in the future? - Controlling - Planning - Organizing - Leading

Planning

Which of the following is NOT true concerning planning? 1. Planning is the most important function of top management. 2. Planning is said to have primacy because it's associated with success. 3. Planning involves 2 activities: goal setting and action-planning. 4. Planning helps managers cope with change. 5. Planning provides performance standards for managers.

Planning is said to have primacy because it's associated with success.

Personal biases that interfere with objective rationality in decision making are called _______ biases. - Physiological - Psychological - Dialectic - Affective

Psychological

What type of strategy involves moving into new businesses that are similar to the company's original core business? - Related diversification - Vertical assessment - Horizontal concentration - Competitive liability

Related diversification

What are inputs to a system that can enhance performance? - Competencies - Virtues - Values - Resources

Resources

_____ are inputs to production that can be accumulated over time to enhance the performance of a firm. - Resources - Personnel - Values - Expenses

Resources

In the BCG Matrix, what business-level strategy would one select for a dog that is profitable? 1. Retrenchment 2. Growth 3. Stable Growth 4. Divestment

Retrenchment

The process of assessing a company's internal strengths and weaknesses, as well as determining external threats and opportunities is known as a ___________ analysis.

SWOT

A technique that helps managers summarize relevant facts from the internal and external analyses of an organization in order to formulate strategy is known as: 1. Environmental scanning 2. SWOT analysis 3. A mission statement 4. A vision statement 5. A strategic forecast

SWOT analysis

Which of the following components of a well-thought out strategy is most like the concept of corporate strategy? 1. Scope 2. Resource Deployment 3. Distinctive Competence 4. Synergy

Scope

Which stage of the formal decision making process involves generating alternative solutions? - First - Second - Third - Fourth

Second

What name is given to the process of amassing, reviewing, and summarizing all information concerning a particular planning issue?

Situational Analysis

In the ______ stage, planners assemble and study all information relevant to the planning issue in question. - Resource allocation - Strategy implementation - Mission statement - Situational analysis

Situational analysis

Which factors should managers take into account when considering the social realities of a decision? - Involving people effectively and efficiently. - The support of the marketplace. - Social interactions, bargaining, and politicking. - The impact of the decision on customers.

Social interactions, bargaining, and politicking.

Which statement is true about aligning tactical, operational, and strategic plans? - The plans should be easy to implement. - The plans must not be dependent on one another. - Each level should have an individual plan with its own purpose and direction. - The plans must be consistent and mutually supportive.

The plans must be consistent and mutually supportive.

Which stage in the formal decision-making process involves determining the value or adequacy of the alternatives that were generated? - First - Second - Third - Fourth - Fifth -Sixth

Third

Which step of the formal planning process involves evaluating goals and plans? - Third - First - Fifth - Second

Third

What is the goal when companies concentrate on a single industry? - To increase international expansion - To increase vertical integration - To gain entry into an industry - To increase diversification

To gain entry into an industry

Which managers are typically responsible for the development and execution of strategic plans? - Frontline supervisors - Department managers - Middle-level managers - Top-level managers

Top-level managers

What kind of diversification is a company using when it expands into different types of businesses in order to minimize risk? - Foreign - Domestic - Related - Unrelated

Unrelated

A company that is a leader in the pet food category decides to expand its operations into electric vehicles and cosmetics. What kind of strategy is the company adopting? - Horizontal integration - Unrelated diversification - Related diversification - Vertical integration

Unrelated diversification